ESBD_460779_1760127456771_RFP 304-26-0895WF Outbound Mailing Services.pdf

RFP # 304-26-0895WF: Outbound Mailing Services Page 1 of 59 (Rev. 2/2024)

Texas Comptroller of Public Accounts

Kelly Hancock, Acting Comptroller

Request for Proposals Outbound Mailing Services for the

Texas Comptroller of Public Accounts

RFP No. 304-26-0895WF

Issuance Date October 10, 2025

Anticipated Schedule of Events

October 10, 2025 Issuance of RFP

October 20, 2025 Deadline for Submission of Questions (2:00 p.m., CT) October 24, 2025 Release of Official Responses to Questions

(or as soon thereafter as practical) November 4, 2025 Deadline for Submission of Proposals (2:00 p.m. CT)

Late Proposals will not be considered January 1, 2026 Services Commencement Date

(or as soon thereafter as practical)

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Table of Contents

I. Summary

II. Specifications

A. Introduction

B. Background

C. Definitions and Acronyms

D. Scope of Services

E. Contract Resulting from this Solicitation; Order of Priority

F. Warranty of Performance

G. Security Incident Notification

H. Insurance and Bonds

I. Criminal Background Investigation

J. Contract Term; Survival of Terms

K. Acceptance Criteria

L. Payments

M. Discounts

N. PO Addition and Deletion

O. HUB Subcontracting Plan Information

P. Respondent Documents

Q. Respondent Exceptions

R. Respondent’s Past Performance; Vendor Performance Tracking System

III. Proposal Submission Requirements

A. Delivery of Proposal

B. Proposal Content and Format

IV. Mandatory Price Sheet

V. Standard Terms and Conditions

VI. Execution of Proposal

VII. Conflict of Interest/Disclosure Statement

VIII. Nondisclosure Agreement

IX. Confidential Treatment of Information Acknowledgment

X. Certification Regarding Public Nature of the Proposal

XI. Contractor Cybersecurity Training Attestation Form

XII. Respondent Exceptions

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I. Summary

1. Type of Solicitation: Request for Proposals (RFP)

2. Issuing Office: Texas Comptroller of Public Accounts (CPA) Procurement Section Room 300, Attn: RFP No. 304-26-0895WF 111 E. 17th Street Austin, Texas 78774

3. Additional Requirements/Qualifications: N/A

4. Responses to RFP: Sealed Competitive Proposals

5. Deadline for Proposals: In Issuing Office No Later Than:

November 4, 2025; 2:00 p.m., Central Time (CT)

6. Initial Contract Term: January 1, 2026 to August 31, 2026

7. CPA Optional Contract Terms: September 1, 2026 through August 31, 2027 September 1, 2027 through August 31, 2028 and September 1, 2028 through August 31, 2029

8. CPA Contact Person for this RFP: Wendy Foley-Smith, CTCM, CTCD

Email with delivery receipt requested to: wendy.foley@cpa.texas.gov and bidcpa@cpa.texas.gov

9. Proposals Submitted by Email: Required; See Section III, Part A

10. Proposals Submitted by Fax: Not Accepted

11. Pre-Proposal Conference: N/A

12. Pre-Proposal Inspection: N/A

13. Letters of Intent to Submit a Proposal: N/A

14. RFP Addenda: Notices of changes to items directly impacting the original RFP or solicitation process will be posted on the Electronic State Business Daily (ESBD) located at: http://www.txsmartbuy.gov/esbd. CPA will post any amendment to this solicitation on the ESBD as an RFP Addendum. It is the responsibility of an interested party to check the ESBD for updates to this RFP before submitting a Proposal. Each Respondent is solely responsible for verifying CPA’s receipt of its questions, if applicable, and its Proposal by the deadlines specified in this RFP.

15. Questions and Answers: Questions regarding this RFP must be in writing and must be submitted to the CPA Contact Person specified in Part 8, no later than October 20, 2025; 2:00 p.m. CT. Telephone inquiries will not be accepted.

Questions may be submitted by email to the email address specified in Part 8. CPA intends to post answers to the questions received on the ESBD on October 24, 2025, or as soon thereafter as practical.

mailto:wendy.foley@cpa.texas.gov mailto:bidcpa@cpa.texas.gov http://www.txsmartbuy.gov/esbd

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16. Evaluation of Proposals under Best Value Standard (Section 2156.125 of the Texas Government Code):

Criteria Weight Respondent’s Past Performance, Qualifications & Experience 30% Compliance with CPA Specifications 40% Reasonableness of Cost 30% Total: 100%

As applicable, the factors listed in Sections 2155.074, 2155.075, 2156.007, and 2157.003 of the Texas Government Code shall also be considered in making an award. Best and Final Offers may be sought from Respondents whose Proposals are ranked most highly by the evaluation committee. However, CPA encourages Respondents to offer their best pricing at all times. CPA reserves the right in its sole judgment and discretion, and at any time upon failure of negotiations, to reissue or withdraw this RFP rather than continue with negotiations.

17. Email Submission Only. Due to changed building access restrictions, Respondents will not be permitted to hand deliver

Proposals to the Issuing Office. Respondents are required to submit Proposals electronically via email with delivery receipt requested in accordance with Section III, Part A.

18. Contact with CPA Staff: Upon issuance of this RFP, employees and representatives of CPA, other than the CPA Contact

Person identified in Part 8, will not discuss the contents of this RFP with any Respondent or its representatives. Failure of a Respondent or any of its representatives to observe this restriction may result in disqualification of any related Proposal. This restriction does not preclude discussions between the parties to conduct business unrelated to this procurement or to obtain assistance completing Historically Underutilized Business (HUB) forms required by this RFP.

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II. Specifications

A. Introduction

The Texas Comptroller of Public Accounts (CPA), an agency of the State of Texas, issues this Request for Proposals (RFP) to solicit Proposals from qualified vendors for Outbound Mailing Services as described in this Section II and in this RFP (Services). CPA’s objective is to obtain the Services that represent the best value for CPA and the State of Texas according to the terms and conditions of this RFP.

CPA anticipates making a Contract award to one (1) Successful Respondent for the Services. CPA reserves the right not to award a Contract for the performance of all or part of the Services. This RFP is not exclusive and CPA reserves the right to issue additional solicitations regarding the Services or similar services at any time. All Respondents are encouraged to offer their best pricing at all times.

All costs associated with the Services must be included in the Respondent’s Proposal. Proposals that do not meet all of the requirements or contain all of the required documentation specified in this RFP will be rejected as non-responsive.

B. Background

CPA contract expired on August 31, 2025 for the Services.

With this RFP, CPA solicits proposals from qualified vendors to provide the Services to CPA, including all services, materials, equipment and other resources to prepare and transport authorized mailing jobs to the U.S. Postal Service (USPS) or a presort vendor. Each Respondent shall include all Services and prices in its Proposal and be ultimately responsible to CPA for the delivery of the Services, regardless of what business arrangements the Respondent makes for providing to CPA any Services not provided directly by the Respondent itself. All business arrangements and any other business entities involved in providing Services are considered subcontractors of Respondent and must be fully and completely disclosed and explained in the Respondent’s Proposal and included in the Respondent’s HUB subcontracting plan. CPA reserves the right, in its sole discretion, to reject any Respondent-proposed subcontractors.

C. Definitions and Acronyms

• CPA. Texas Comptroller of Public Accounts.

• Award Date. The Award Date is the earlier of the date an authorized representative of CPA (1) issues a Purchase

Order (PO) or (2) signs a formal, written agreement.

• Contract. The agreement described in Section II, Part E (Contract Resulting from this Solicitation; Order of Priority), if any.

• Respondent. Any person or entity that submits a Proposal.

• Successful Respondent. The Respondent awarded a Contract, if any.

• Proposal. A response to this RFP.

• Coding Accuracy Support System (CASS) software: A service offered to mailers, service bureaus and software vendors to help them improve the accuracy of matching to delivery point barcodes, ZIP+4 codes, 5-digit ZIP codes and carrier route codes on Mail Pieces. CASS provides a common platform to measure the quality of address-matching software. The results are returned to users, and may be used to diagnose and correct software problems. Section 2176.201, Texas Government Code, requires any bulk-mail service provider to use address-matching software that meets or exceeds USPS CASS standards

• Dallas Bulk Mail Center (DBMC): United States Post Office located at 2400 DFW Turnpike, Dallas, Texas, 75398.

• Delivery Point Barcode (DPBC): A barcode that consists of 62 bars with beginning and ending frame bars and five bars each for the nine digits of the ZIP+4 code. The DPBC allows automated sorting of mail to the carrier-level in walk sequence.

• Encodable Mail: Mail that does not receive a barcode through the multi-line optical character reader (MLOCR), but is compatible with the barcode sorter and is able to receive a barcode through an encoding system.

• Electronic State Business Daily (ESBD): A website where state agencies post bid opportunities valued at $25,000 or more. Vendors can view the newest postings for all state agencies, the solicitations of a particular state agency, or search by type of contract requested.

• General Mail Facility (GMF): United States Post Office located at 8225 Cross Park Drive, Austin, Texas, 78710.

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• Intelligent Mail barcode: Formerly called the “4-State Customer Barcode.” It is the upgraded USPS barcode used to sort and track letters and flats and provides expanded ability to track individual Mail Pieces.

• Mail Match Marks: Marks that are printed on the back of forms, read by camera and that specify the number of pages that a particular mail recipient receives.

• Mail Piece: The entire contents of an envelope, which Successful Respondent will prepare in accordance with all USPS requirements for delivery to a unique recipient’s address.

• Move Update: The Move Update standard is a means of reducing the number of Mail Pieces requiring forwarding or return by periodically matching the mailer’s address records with the NCOA orders received and maintained by USPS.

• Multiline Accuracy Support System (MASS): MASS provides equipment certification for MLOCRs,, RVE (Remote Video Encoding) systems, LVE (Local Video Encoding) and encoding stations to ensure the hardware and software’s ability to perform accurate address matching and barcoding of the mail.

• National Change of Address (NCOA): A secure database of some 160 million permanent change of address records with names and addresses of individuals, families and businesses having filed a change-of-address with USPS. This allows mailers to process and update their mailing lists prior to sending out paid mailings.

• Optical Mark Reader (OMR): The software that reads and interprets Mail Match Marks on documents and forms.

• The Occupational Safety and Health Administration (OSHA): An agency of the United States Department of

Labor whose mission is to "assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance." https://www.osha.gov/law-regs.html

• Presort Vendor: The vendor providing mail presort (barcode) services to the State of Texas under a contract awarded by the Texas Comptroller of Public Accounts.

• Qualified Vendor: In order for a vendor to be qualified to respond to this RFP, the vendor shall provide mail job construction, distribution and mailing services. Qualified vendors shall provide folding, inserting, metering, and presorting services for volumes in excess of four million pieces annually. Qualified vendor must meet all of the requirements set forth in the Request for Proposal and meet CPA’s tight delivery schedules for high transaction mailing volumes.

D. Scope of Services

D.1 General

1. Successful Respondent shall be responsible for all Services as the need is determined and requested by CPA during the period of any Contract. The scope of the Services includes all services and other resources required to process outbound mailing services, and transport authorized mailing jobs to the USPS or the presort vendor, and as further described in this RFP. Through written work orders, CPA will provide Successful Respondent with electronic files that contain the recipients’ names and addresses, and similar information required for Successful Respondent’s completion of each job. The Services include Successful Respondent’s arranging and transporting the mailing jobs to USPS drop-off locations or presort vendors, but specifically does not include private carriage of mail over postal routes or any other functions that would constitute a violation of the federal Private Express Statutes (https://pe.usps.com/text/qsg300/Q608.htm). The Services pertain mainly to large-production mail and mass-mailing jobs for the CPA.

2. Successful Respondent shall process only written work orders signed by CPA’s authorized individuals.

3. Successful Respondent shall have the ability to process larger jobs at the volume range of 50,000 to 70,000 Mail

Pieces per day.

4. CPA does not distinguish between flat, larger envelopes and smaller sizes of envelopes when processing a Mail Piece.

Processing a Mail Piece includes, but is not limited to, folding, inserting, sealing, presorting and applying an Intelligent Mail barcode. The application of the appropriate, discounted postage based on type, dimensions and weight of each Mail Piece will be performed using CPA-provided postage meters.

D.2 Current CPA Mail Environment

An overview of the volume of jobs and Mail Pieces processed by CPA is available in Attachment A.

D.3 Required Use State of Texas Mail Presort Contract https://en.wikipedia.org/wiki/United_States_Department_of_Labor https://en.wikipedia.org/wiki/United_States_Department_of_Labor https://www.osha.gov/law-regs.html https://www.osha.gov/law-regs.html http://pe.usps.com/text/qsg300/Q608.htm

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The Comptroller of Public Accounts, State Term Contract No. 915-M1: Mail Presort Services Contract (state mail contract) provides for high-volume presort and barcode mail services for state agencies. Additional information on this contract can be found at http://www.txsmartbuy.com/contracts/view/1967. CPA requires Successful Respondent to use the state mail contract.

Each Respondent must describe in its Proposal how it will utilize this contract, where applicable, in the delivery of Services.

Proposal shall also include proposed services Respondent is offering that are not currently available through utilization of the existing state mail contract.

D.4 Functions CPA Will Perform

The following functions will be performed by CPA under the terms of the Contract and are not included in the Services:

1. Preparation and Submission of Mail Job. CPA will collect, prepare and submit mail jobs for mailing, including, but not limited to: completing work orders, assigning work order numbers, providing complete instructions for mailing services, designating services requested, designating requested mail date, preparing bundles of mail to be transported, binding and/or shrink-wrap of job bundles or pallets of mail services work orders, and establishing regular mail pick-up schedules.

2. Mailing Lists. CPA will provide NCOA-verified electronic address lists from divisions requesting mailing services.

In some cases, totaling five (5) percent or less, the mailing address lists will not be NCOA verified.

3. Envelopes. CPA will provide all pre-printed envelopes to Successful Respondent, as follows: #10 window envelopes, #11 window envelopes, #10 return envelopes for the various departments, and 9-inch x 12-inch size flat envelopes and other larger sizes. CPA will not provide boxes or other shipping materials. Details regarding past use is found in Attachment C – CPA Envelope Usage for FY20.

4. Correspondence. CPA will provide all printed materials or electronic files of items to be inserted into pieces of mail.

5. Postage Meters. CPA shall provide only the postage meters that are described in Attachment B – Postage Meter

Equipment Provided by CPA, which shall comply with the current and any amended USPS postage meter requirements. In compliance with Section 2203.004, Texas Government Code, Successful Respondent is prohibited from using CPA metering equipment to pay for postage, reimburse costs, process mail, or for any other purpose for any person or entity other than state purposes for CPA. In compliance with Section 2203.002, Texas Government Code, a postage meter indicia ad shall be attached to any CPA-provided metering equipment, as follows:

OFFICIAL BUSINESS

STATE OF TEXAS

PENALTY FOR PRIVATE USE

6. Permit Account. CPA holds Permit Imprint No. 1411 (Permit) for First Class Permit Mail. Successful Respondent may receive Mail Pieces from CPA to be folded and inserted but that do not require postage metering when using the Permit account maintained at USPS.

D.5 Mail Piece as Basis for Measuring Volumes

Respondents shall submit price proposals based on one Mail Piece, unless otherwise specifically required in this RFP. This method of pricing will allow CPA to: (1) compare price proposals to the current volumes and price per one Mail Piece; (2) compile the per-unit price per Mail Piece; and (3) plan accordingly.

D.6 Price Proposal

Respondent’s proposed unit prices shall be entered and submitted on Exhibits A-1 through A-7 and must include all costs not separately listed in the price-proposal tables. Respondent’s proposed unit prices per Mail Piece shall include, but are not limited to, the following:

1. Labor. All Respondent costs to provide Services must be included in the unit price submitted in Exhibits A-1 through A-7.

a. Receiving and Planning. Successful Respondent shall be solely responsible for picking up, reviewing and otherwise planning, prioritizing, processing authorized CPA work orders, evaluating status of jobs and performing all other related activities.

http://www.txsmartbuy.com/contracts/view/1967

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b. Pre-Mail Preparation. Successful Respondent shall be responsible for providing all pre-mail preparation, such as determining if all items match the work order, determining the appropriate method of delivery (by USPS or presort vendor), and preparing items for transport to USPS or the presort vendor.

c. Reduce Undelivered and Returned Mail. To reduce the volume of undelivered and returned mail, Successful

Respondent shall comply with Section 2176.201(b), Texas Government Code, by providing and utilizing address-matching software on all CPA Mail Pieces. The address-matching software must meet or exceed certification standards under CASS software or subsequent standards adopted by USPS in order to claim presort or automation rates for First Class.

d. Move Update. Successful Respondent must utilize an updated address database that provides some method of

Move Update to include NCOA.

e. Pickup and Transport. Successful Respondent shall be solely responsible for picking up and transporting all mail jobs from CPA to Successful Respondent’s facilities for processing and to the appropriate delivery location at USPS or the presort vendor.

• Successful Respondent shall provide on average two (2) daily pickups from CPA: the first daily pickup is required no later than 10:30 a.m., and the second daily pickup is required no later than 2:30 p.m. If required by CPA, the Successful Respondent shall pick up from CPA after 4:30 p.m. but no later than 5:00 p.m.

• Successful Respondent shall make a minimum of two (2) pickups a month from CPA’s Distribution Center, 4437 Supply Court Building 5, Austin TX 78744 to restock envelopes and inserts.

• The Successful Respondent shall transport processed mail to, and for acceptance by, USPS or the presort vendor for same-day mailing.

• Successful Respondent shall perform all Services, including, but not limited to, Part II, D. Scope of Services.

Successful Respondent shall provide all Services in compliance with all requirements of this RFP, the Contract, and Section 403.011, Texas Government Code.

f. Mail Delivery Locations. Successful Respondent shall transport outgoing mail to the GMF and/or the DBMC.

Successful Respondent shall deliver mail to be presorted to the presort vendor for processing. Successful Respondent shall make as many unscheduled trips as needed to obtain all available postal rate discounts for CPA.

g. Mail Processing Requirements. Successful Respondent shall provide the following mailing services:

• Receive approved work orders from CPA for mail processing.

• Follow instructions provided on CPA work order to sort documents by hand, including collating and separating into page count sets.

• Prepare documents, inserts and envelopes for automation processes, including documents that do not require collation.

• Folding services.

• Inserting services, to include inserting documents, flyers, return envelopes and other miscellaneous items.

CPA-provided inserts may or may not utilize mail marker or barcoding, as applicable.

• Envelope sealing services.

• Apply inkjet addresses onto envelopes, booklets, postcards, and labels.

• Postage metering services.

• Apply Intelligent Mail barcode.

• Presort according to Intelligent Mail barcode.

• Make ready for entering the USPS mail stream for transport and delivery to the presort vendor, GMF or

DBMC.

• Other mailing services CPA may require.

h. Mail Security. Successful Respondent shall guarantee the security of all Mail Pieces and transport all Mail Pieces in an enclosed and locked vehicle at all times to prevent damage, loss or theft of mail.

i. Successful Respondent shall provide video recording devices inside the transport vehicle to continuously record the transportation to the USPS facility and or pickup from the warehouse to CPA as further theft deterrent and must have the ability to store surveillance footage for up to 30-days.

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j. Compliance with Federal Private Express Statutes. Successful Respondent shall provide Services pursuant to the Contract, if any. Successful Respondent shall warrant and represent that each delivery does not violate Federal Private Express Statutes (https://pe.usps.com/text/qsg300/Q608.htm) and will furnish a legal opinion to that effect upon CPA’s request.

k. Included in Price Proposal. Successful Respondent’s labor prices for all of the Services shall include all salaries, benefits, overtime and contracted temporary assistance. All proposed prices associated with these and similar types of activities must be included in the unit price.

2. Equipment and Other Resources.

a. Successful Respondent shall provide, and its proposed unit prices must include, all equipment, equipment maintenance and other expenses for all equipment and resources owned, leased or used by Successful Respondent in its performance under the Contract, with the exception of postage meters owned or leased by CPA.

b. CPA will be responsible for postage meter acquisition, lease and maintenance. Successful Respondent shall contact meter vendor directly to report any damage, malfunction or necessary maintenance of a postage meter to expedite repair or replacement of the metering equipment, with timely notice to CPA regarding the same.

Successful Respondent shall follow all meter vendor terms and conditions of lease.

3. Any and All Costs, Resources and Activities Not Listed on the Price-Proposal Chart. Successful Respondent shall provide all other services and other resources to perform the Services.

a. Respondents’ price proposals must include all costs incurred under the Contract, including, but not limited to, any additional fees and costs that may be charged by the USPS or presort vendor, such as postage increases, rates for remote or underserved zip codes, and exceptions to discounted fees.

b. Respondent must include all costs for providing the Services for the items listed in Exhibits A-1 through A-7.

CPA will not reimburse for incidental expenses, including, but not limited to, transportation costs, pickup and delivery fees, parking fees, parking tickets, toll road fees, or other related or incidental expenses.

c. Successful Respondent shall monitor USPS regulatory changes, permit costs, branding changes and other programs that may affect postage costs and/or delivery services.

d. Successful Respondent shall not tender short-paid mail (i.e., mail with less-than-required postage) to the USPS.

4. Fixed Pricing. Prices submitted by Successful Respondent shall be firm, fixed, and fully loaded for the entire term of the Contract, including any extension periods.

D.7 Types of Outbound Mailing

All Services are time-sensitive. CPA’s required turn-around times are reflected in the price proposal Exhibits A1-A7 and other data found in Attachments A and D.

1. Rush. As used in this RFP, the term “Rush” outbound mailing refers to the packaging, processing and transport to the USPS or a presort vendor of jobs that CPA’s Contract Manager requests be completed the same day when CPA’s work is received by Successful Respondent after 4:30 p.m. The term “Rush” refers to jobs that are to be completed and delivered in accordance with the Contract and that are evaluated and submitted in writing by CPA’s Contract Manager. Normal business hours for CPA’s office are Monday through Friday, 8:00 a.m. to 5:00 p.m. Successful Respondent shall complete mailing services and transport Rush jobs to USPS and/or the presort vendor on the same day.

2. Levels 1 through 7. The outbound mailing category is comprised of seven (7) distinct levels associated with required turnaround times, which are further detailed in Exhibits A-1 through A-7. Levels 1 through 7 refer to the packaging, processing and transport to the USPS or a presort vendor of jobs received prior to 4:30 p.m. The Levels refer to jobs that are completed and delivered in accordance with the standards of performance of the Contract and that are evaluated and submitted in writing by CPA’s Contract Manager.

3. Weekend Work. Any service provided by Contractor under the Contract that is performed during weekend hours at the request of CPA is considered “Weeked Work” which may be charged at the “Weekend Rate.” For purposes of this Contract, weekend hours begin at 12:00 AM each Saturday and extend until 8:00AM the next business day.

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Notwithstanding anything to the contrary, services categorized as Rush or Levels 1 through 7, as defined in the Contract, shall not be considered Weekend Work.

a. Weekend Rate. The price for Weekend Work is calculated as the applicable Rush price for each service detailed in Exhibits A-1 through A-6, plus the applicable Rush price multiplied by the Weekend Rate Percentage listed in Exhibit A-8.

b. Weekend Work shall be charged at the applicable Weekend Rate subject to the following:

i. Weekend Rates may only be applied to services actually performed by Contractor during weekend hours and must be invoiced as a separate line item or line items;

ii. Weekend Work must be authorized in advance by CPA in writing;

iii. Services performed by Contractor over a weekend without prior written authorization from CPA shall be charged at the normal rate associated services provided (see Exhibits A-1 through A-6) at the appropriate categorization level (Rush, Level 1 through 7) as solely determined by CPA; and

iv. Performance of Weekend Work is subject to the availability of Contractor personnel. CPA and Contractor shall make good faith efforts to coordinate in advance of anticipated Weekend Work to ensure adequate personnel are available.

D.8 Attachments and Exhibits Providing Additional Information

Additional information related to the requisite services is provided in the following Exhibits and/or Attachments:

Exhibit A: Price Proposal

Exhibit A-1: Price Proposal for Folding, Inserting, Sealing, Metering and Presorting Exhibit A-2: Price Proposal for Hand Work Mailing Services Exhibit A-3: Price Proposal for Address Printing Exhibit A-4: Price Proposal for Presorting Electronic Address File Exhibit A-5: Price Proposal for Data Reliability System Exhibit A-6: Price Proposal for Sealing Document with Mailing Tabs Exhibit A-7: Price Proposal for Processing Warrants with Matching Letters Exhibit A-8: Price Proposal for Weekend Rate Exhibit A-9: Price Proposal for Optional Services

Attachments: Outbound Mailing Information

Attachment A: Outbound Mail Processed FY 2024 Attachment B: Postage Meter Equipment Provided by CPA for Fiscal Year 2024 Attachment C: CPA Envelopes Usage for FY 2024 Attachment D: CPA’s Outgoing Mail Work Order Form

All references to “days” shall mean CPA business days.

Respondents may reference the monthly volumes provided on Attachment A for informational purposes in preparing their price proposal responses on Exhibits A-1 through A-9.

D.9 Optional Services

Respondents are encouraged to submit and describe in detail in their Proposals’ optional features, products or services that would benefit CPA but are not part of the minimum requirements and or configurations of this RFP. Optional features, products, or services may include additional training, additional automation enhancements, software licenses, increased service levels, alternate pricing plans, etc. In its Proposal, Respondent must describe with specificity any proposed optional features, products, or services and include per unit pricing for such options. See Exhibit A-9.

D.10 CPA’s Contract Manager

CPA will designate in writing one (1) contract manager and at least one designee authorized to act on behalf of the contract manager. “Contract Manager” means either the contract manager or his or her designee. CPA’s Contract Manager will have authority to request Services, provide job and work order specifications, communicate with Successful Respondent’s account manager, evaluate quality of work, accept returned envelopes/mail, review weekly and monthly production reports, review postage-usage reports, conduct periodic Contract review meetings, and monitor and approve monthly invoices.

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D.11 Jobs, Work Orders, and Acceptance

A “job” refers to specific work to be completed as authorized by completed CPA work order and authorized by CPA’s Contract Manager. A “work order” is a hard copy document submitted to Successful Respondent at the time the Successful Respondent picks up the job at CPA’s facility. Each work order defines the terms, conditions, specifications, deadlines and overall requirements of each job that are in addition to those contained in the Contract. Successful Respondent will receive compensation only for jobs and work orders completed and delivered in accordance with all standards of performance and that are evaluated and accepted in writing by CPA’s Contract Manager. All work orders and jobs must be submitted through, and approved by, CPA’s Contract Manager. Services requested, specifications provided, work evaluated and accepted by any individuals other than Contract Manager shall not be authorized for payment or recognized under the Contract.

D.12 Successful Respondent’s Account Manager

1. Designation and Assistants. Successful Respondent shall designate, in writing, one (1) account manager and two (2) designees authorized to respond to, and communicate with, CPA’s Contract Manager about requests for Services, jobs and work orders. “Account Manager” means either the account manager or his or her designee. The Successful Respondent’s Account Manager shall conduct quality assurance reviews and provide supervision of all work performed under the Contract.

2. Changes to Account Manager. Successful Respondent shall provide advance, written notice of a change to its

Account Manager to CPA’s Contract Manager at least thirty (30) calendar days before any proposed change. The actual change shall occur only after Successful Respondent has submitted documentation in form and substance satisfactory to CPA, provided detailed qualifications on the proposed substitute Account Manager and the proposed replacement’s ability to assume corresponding responsibilities under the Contract, and Successful Respondent has received written authorization from CPA’s Contract Manager approving the change. The only exceptions to the thirty

(30) day notification and prior written authorization requirements are for unforeseen emergencies, such as sudden illness or other circumstances that the parties verbally agree at the time preclude Successful Respondent from providing written, 30-day notice and waiting for written authorization from CPA’s Contract Manager approving the change.

D.13 Mail Match Mark Reader Functionality

CPA currently utilizes an OMR system for its outgoing mail. Pursuant to this system, Mail Match Marks are computer generated by CPA and are printed on documents as CPA’s mainframe printers process them. The OMR is software that reads and interprets the Mail Match Marks printed on the back of forms and specifies the number of pages that a particular mail recipient receives. The Successful Respondent’s equipment must have OMR capabilities to batch or collate multiple forms going to a single address. Successful Respondent must use a system comparable to the CPA’s current OMR system or propose other technology that is capable of handling the CPA’s bulk mailing requirements.

If CPA considers technology other than OMR, CPA will collaborate with Successful Respondent to evaluate, test, and verify Successful Respondent’s proposed system to ensure that the system meets CPA’s outgoing mail requirements.

D.14 Data Reliability System

CPA seeks to enhance its outgoing mail function by implementing a Data Reliability System, such as 2D Barcode or similar technology system, to replace its current mail insertion processes.

Along with the requirements of the RFP, CPA is requesting Respondents provide a detailed proposal and subsequent unit price for 2D Barcode or similar technology system. The price for services must be based on a unit price per address method of calculation for application of the barcode. Unit price per address is defined as one (1) address block for one (1) mail recipient and not determined by the number of pages in a recipient’s envelope container. A fixed unit price per address block must be stated in the Exhibit A-6 Price Schedule – Data Reliability System Table.

Proposal for Data Reliability System must include, but not be limited to, the following:

• Full, detailed description of Data Reliability System functions and features, including objectives.

• Diagrams of proposed data workflow and full description of each process within the workflow.

• Project scope of work, including timelines for implementation.

• Security features of systems and data transmission.

• Job reporting feature, including insertion errors, damages and rejections.

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• Job data tracking capabilities.

• System features and enhancements.

• Feasibility and compatibility with CPA’s systems and processes.

• Unit prices per record (address block) based on turnaround time and volume.

• Unit price per piece of paper to print documents.

• Provide CPA a means to transmit electronic address files over a secure network.

• Presort and apply barcode to address block and return electronic file to CPA, allowing CPA to print documents.

• Presort and apply barcode to address block and print all documents required for the job.

The unit prices quoted are subject to negotiation to determine the best value to CPA and the State of Texas. Successful Respondent is not guaranteed any minimum amount of compensation under the Contract for these services.

D.15 Presorting:

1. General. Successful Respondent shall provide presorting services. Successful Respondent must presort First Class, Marketing Mail, Media Mail, Library Mail, and Bound Printed Matter letters, flats, publications, and postcards produced by CPA before tendering it for acceptance to USPS. Successful Respondent must accurately perform all of the following tasks necessary to meet USPS requirements: transporting mail, CASS/MASS certification, applying DPBC, marking, combining, co-mingling, presorting, packaging, traying, sleeving, banding, sacking, labeling packages and postal containers, generating USPS documentation, and performing move updates on all classes of agency’s metered and permit imprint mail to produce the lowest level of sortation and greatest postal discount possible.

2. Types of Mail. The Successful Respondent must combine CPA’s mail with mail from other customers in order to obtain the greatest postal discounts possible. The CPA may present various types of mail to the Successful Respondent including, but not limited to, the following:

• Automation-compatible mail including: letters, self-mailers, booklets, postcards, heavy letter mail, reply cards and envelopes;

• Zip code sequenced;

• Non-zip code sequenced;

• Pre-barcoded (DPBC);

• Non pre-barcoded; and

• Non-automation compatible.

3. Barcoding. The Successful Respondent shall apply a delivery address barcode and presort to the greatest extent possible to all automation compatible and encodable letters, flats, postcards, and other mail types, with the exception of parcels. The Successful Respondent shall presort all non-automation compatible letters, postcards, and flats to the greatest extent possible.

4. Outsourcing Presort Services. Successful Respondent may subcontract presorting to a presort vendor only as provided for herein. Successful Respondent must designate the use of the state mail contract, described in Section II, Part D.3, in its Proposal and detail the complete process flow of the subcontractor. The Successful Respondent must also state its intention to use a subcontractor for all or a portion of the presorting services. Unit Price for Presorting must be quoted in Price Proposal Exhibit A-2 and include all costs associated with presorting services, up to and including costs for processing non-automation flats.

D.16 CASS Certification

Respondent shall specify in its Proposal that its address-matching software is, or will be before a Contract is executed, CASS certified to ensure that CPA’s mail lists will meet USPS standards. Respondent must factor all costs for CASS certification in its prices for Services.

D.17 Surveying Customers

Successful Respondent must prepare and submit to CPA’s user divisions a customer satisfaction survey. In addition, if requested by CPA, the Successful Respondent must select and use an independent surveying company to administer and report the results of such a survey to CPA. Successful Respondent shall submit such surveys results to CPA no less than quarterly. A draft of the survey shall be submitted to CPA’s Contract Manager for review and approval prior to implementing it.

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D.18 Invoicing

Successful Respondent shall submit a monthly invoice to CPA’s Contract Manager for services authorized and completed during the previous month. Successful Respondent shall submit these invoices no later than the 5th working day of the month after the month being reported. CPA shall not be invoiced for any payment amount in advance.

D.19 Job Management System

Respondents must provide a system for submitting jobs, tracking CPA’s work orders, invoicing for completed jobs, reporting on Contract performance, and surveying customers.

1. Weekly Production Report. Successful Respondent must prepare and submit a weekly productivity report, due by noon on the Monday following the week being reported, to provide the details of all jobs processed during the reported week. The weekly report must include, at a minimum, the following information:

• CPA work order number;

• Description of job or job name;

• Job number;

• Requested completion date;

• Actual completion date; and

• Quantity (Mail Pieces).

2. Weekly Inventory Report. This report will not be nessessary if the required information is available for CPA to download from a website. Successful Respondent must prepare and submit a weekly inventory report, due by noon on the Monday following the week being reported, to provide CPA’s supply inventory located at the Successful Respondent location. The weekly inventory report must include, at a minimum, the following information:

• CPA Product Name;

• CPA Form Number(SKU);

• Available Quantity; and

• Quantity on hand.

3. Monthly Reports. Successful Respondent must prepare and submit monthly transactional and operational reports that detail compliance with each of the transitional and operational criteria included in this RFP.

• Successful Respondent must prepare and submit productivity reports and postage-usage reports.

• All monthly reports must be received by CPA by the 5th working day of the month following the month being reported.

• The reports should include postage expenditures compared to presort, and whether presort was used; the number of jobs completed prior to the work order deadline (date and time); and the number of jobs completed after the work order deadline (date and time).

• CPA prefers that such reports be in Microsoft Excel format delivered to CPA’s Contract Manager by e-mail.

4. Monthly Invoice Report. Aggregate monthly invoice for services completed during the prior month. Invoice report shall include the following:

• Division name and code;

• Total charges by division code;

• Total postage charges used by division code;

• Mail Piece count by division;

• Total Mail Piece count;

• Total charges by jobs processed;

• Total number of pieces with postage upgrades;

• Total charges for postage upgrades;

• Grand totals: invoice, postage, Mail Piece;

• Date due and date processed;

• Job number;

• Job name;

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• Work order number;

• Itemized subtotal for each service (itemization for each line item); and

• Additional information, as requested by CPA.

5. Postage Usage Report. Monthly postage report shall include the following:

• Date postage applied;

• Work order number;

• Job number;

• Invoice number;

• Division code;

• Description of job or job name;

• Mail Piece count;

• Mail Piece rate;

• Total postage used by job;

• Meters number;

• Postage deposits;

• Postage rejects and comments regarding rejected mail;

• Total monthly postage used; and

• Additional information, as requested by CPA.

6. Postage Meter Balance Report. Daily Meter balance for any CPA postage meter at the Successful Respondent’s location. Postage Meter Balance report shall include the following:

• Date

• Meter Serial number

• Meter Balance

D.20 Performance Evaluation, Conditions of Payment

1. Performance Evaluation. CPA will perform ongoing evaluations of Successful Respondent’s performance of jobs and overall performance compared to the standards of performance and other requirements of the Contract. CPA reserves the right, in its sole discretion, to conduct ad hoc, unannounced and scheduled evaluations, both on site and off site. In addition, Successful Respondent and its facilities shall be subject to ad hoc, unannounced and scheduled evaluations and audits, on site and off site, by the Texas State Auditor’s Office (State Auditor) and other authorized State of Texas representatives. Successful Respondent shall cooperate fully with such evaluations and audits.

2. Conditions of Payment. CPA will not compensate Successful Respondent for any jobs not requested by CPA’s

Contract Manager. CPA will not compensate Successful Respondent for any jobs requested by CPA’s Contract Manager that CPA determines were not performed in compliance with all standards of performance or other requirements of the Contract. CPA may withhold compensation if the Successful Respondent’s overall performance does not comply with such standards of performance and requirements. CPA will not compensate Successful Respondent for any job requested by CPA’s Contract Manager until CPA’s receipt, evaluation and written acceptance of the job. CPA will not unreasonably withhold acceptance. CPA may revoke prior written acceptance of jobs for deficiencies in performance not reasonably apparent to CPA during its original evaluation.

D.21 CPA Data Safeguard Standards.

1. Defined Terms. The term “CPA Data” refers to CPA’s information as well as other entity information in the possession of CPA that is processed, stored, or transmitted by a computer. CPA Data includes all data that is generated by Successful Respondent in performance of a contract with CPA. The term “CPA Information System” refers to those devices, software, networks and related infrastructure that CPA owns, operates or has obtained for use to conduct CPA business. Devices include, but are not limited to, CPA-owned or managed storage, processing, and communications devices, as well as personally owned devices.

2. Access to CPA Data. Successful Respondent represents and warrants that it will implement, maintain, and use appropriate administrative, technical, and physical safeguards to preserve the confidentiality, integrity, and availability of CPA Data. Successful Respondent will not collect, access, use, disclose, or retain CPA Data other than as necessary to perform the services specified in a contract resulting from this solicitation or as otherwise authorized in writing by CPA. Successful Respondent will restrict access to CPA Data to only those personnel who must have the information

RFP # 304-26-0895WF: Outbound Mailing Services Page 15 of 59 on a “need to know” basis. Successful Respondent will not use CPA Data, or any information derived from CPA Data, for its own benefit or the benefit of any other person or entity. Successful Respondent will not share CPA Data with its parent company or other affiliate without CPA’s express written consent.

3. Reserved.

4. Reserved.

5. Reserved.

6. Location of CPA Data. Successful Respondent shall ensure that CPA Data (i.e., primary and backup) remains, at all times, within the continental United States. Successful Respondent shall receive, process, transmit, and store all CPA Data within the continental United States. Successful Respondent’s point of access to CPA Data shall be within the continental United States.

7. Reserved.

8. Reserved.

9. Auditable Information Security Framework. Successful Respondent shall secure its own and its third-party service providers’ systems (e.g., IT service provider, Cloud Service Provider) in a manner consistent with an auditable information security framework e.g., National Institute of Standards and Technology (NIST), International Organization for Standardization (ISO) 27001.

10. Reserved.

11. Supply Chain Risk Management. Successful Respondent shall provide CPA’s Contract Manager a description of how it manages supply chain risks. Specifically, Successful Respondent shall describe its established agreements and procedures with entities involved in the supply chain for the notification of supply chain risks, compromises, and the result of assessments or audits. During the term of the contract, Successful Respondent shall provide CPA’s Contract Manager prompt, written notice of supply chain risks that impact the delivery of the products and services of the Contract. Examples of supply chain risks include supplier financial failure, production control/product quality, market supply and demand, labor disputes/shortages, cybersecurity threats, natural disasters. Successful Respondent shall notify CPA of a supply chain compromise and potential compromise in accordance with Section G Security Incident Notification.

12. Reserved.

13. Reserved.

14. Third-Party Service Providers. It is Successful Respondent’s sole responsibility to ensure that its access and the access

Successful Respondent grants to its service providers to CPA Data or CPA Information Systems does not result in unauthorized access to CPA Data or CPA Information Systems.

15. Federal Taxpayer Information. Successful Respondent shall not access, process, store or transmit IRS Federal

Taxpayer Information for or on behalf of CPA unless expressly authorized by a contract with CPA.

16. Reserved.

17. Reserved.

18. Reserved.

19. Reserved.

20. Reserved.

21. Reserved.

D.22 Liquidated Damages.

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In submitting a Proposal, Respondent agrees that the measure of damages in the event of a default or breach by Successful Respondent may be difficult or impossible to calculate. In the event Successful Respondent fails to perform Services or complete the obligations under the Contract in a timely manner, CPA may require Successful Respondent to pay, as liquidated damages and not as a penalty, an amount equivalent to two percent (2%) of the total cost for Services or obligations not completed as required by the Contract per calendar day of delay. CPA may impose, but is not obligated to impose, these liquidated damages in lieu of any monetary damages available to CPA under the Contract or applicable law.

D.23 Optional Features, Products or Services.

If Respondent believes there are additional features, products or services that would benefit CPA under this RFP, Respondent may describe such features, products or services and include pricing for such features, products or services in the Mandatory Price Sheet.